Overview

"This volume consists of six essays that develop and/or apply ""rational expectations equilibrium inventory models"" to study the time series behavior of production, sales, prices, and inventories at the industry level. By ""rational expectations equilibrium inventory model"" I mean the extension of the inventory model of Holt, Modigliani, Muth, and Simon (1960) to account for: (i) discounting, (ii) infinite horizon planning, (iii) observed and unobserved by the ""econometrician"" stochastic shocks in the production, factor adjustment, storage, and backorders management processes of firms, as well as in the demand they face for their products; and (iv) rational expectations. As is well known according to the Holt et al. model firms hold inventories in order to: (a) smooth production, (b) smooth production changes, and (c) avoid stockouts. Following the work of Zabel (1972), Maccini (1976), Reagan (1982), and Reagan and Weitzman (1982), Blinder (1982) laid the foundations of the rational expectations equilibrium inventory model. To the three reasons for holding inventories in the model of Holt et al. was added (d) optimal pricing. Moreover, the popular ""accelerator"" or ""partial adjustment"" inventory behavior equation of Lovell (1961) received its microfoundations and thus overcame the ""Lucas critique of econometric modelling."

Full Product Details

Author:   Tryphon Kollintzas
Publisher:   Springer-Verlag New York Inc.
Imprint:   Springer-Verlag New York Inc.
Edition:   Softcover reprint of the original 1st ed. 1989
Volume:   322
Dimensions:   Width: 17.00cm , Height: 1.50cm , Length: 24.40cm
Weight:   0.508kg
ISBN:  

9780387969404

ISBN 10:   0387969403
Pages:   269
Publication Date:   21 February 1989
Audience:   Professional and scholarly ,  Professional & Vocational
Format:   Paperback
Publisher's Status:   Active
Availability:   Out of stock  
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Table of Contents

I: The Linear Rational Expectations Equilibrium Inventory Model: An Introduction.- II: Inventories and Price Fluctuations under Perfect Competition and Monopoly.- III: Temporal Aggregation and the Stock Adjustment Model of Inventories.- IV: A Linear Rational Expectations Equilibrium Model for the American Petroleum Industry.- V: Seasonality, Cost Shocks, and the Production Smoothing Model of Inventories.- VI: Order Backlogs and Production Smoothing.

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